What are Payroll Taxes?Payroll taxes are the taxes that any employer deducts from an employee's paycheck and sends to the IRS. This is usually federal taxes, state taxes, social security taxes, Medicare taxes, and any local taxes that are required. The employer also has the liability to pay their part of the payroll taxes. This is usually social security taxes, Medicare taxes, federal taxes, and state taxes.
How do payroll taxes become delinquent?There are many reasons that an employer can become delinquent on their payroll taxes. In a bad economy, an employer may use the money deducted from the employees’ paychecks to pay bills instead of paying their taxes. There is also the situation where the employer doesn’t know how much to pay or refuses to pay.
What happens when Payroll Taxes are delinquent?The IRS will immediately assess a penalty of 100% of the taxes owed, which is called the Trust Fund Recovery. This is a very harsh penalty, because the government sees it as breaking a contract with them. The worst part is that the IRS can come after multiple people within the company such as the book keeper, the accountant, the owner, even the payroll specialist. Of course, this is if the IRS finds them liable.
Delinquent Payroll Taxes – Options:First, do not miss another payroll tax payment, as missing more than one can only make the situation worse and way more expensive. Make sure all the other taxes are up to date for company as well. There is a form for an employer to fill out and file to possibly make a payment arrangement with IRS for the delinquent taxes. Depending on the IRS agent, they may request other business documentation to process your request.
This can be a perplexing and time consuming situation, so if you feel you do not have the time or knowledge (in this very confusing process) to complete this on your own, most employers don’t, then contact a professional.
Just as in any delinquent tax situation, start remediation today. The longer you wait, the worse it can and will become. Contact New York Tax Attorney Service, in New York City, today at (347) 535-4017 and they'll get you a professional tax debt specialist to discuss your options in resolving your delinquent payroll taxes.
CALL A TAX ANALYST AT (347) 535-4017!